The German solar components and systems manufacturer also saw decreases in its gross performance and EBIT, although the results were not as negative as its sales decline.
Having achieved a gross performance of 44.3 million in the first quarter of 2010, Sunways expects to reap just 44.3 million this quarter. Meanwhile, its EBIT took a tumble from 4.7 million in the first quarter of last year to -3.5 million in the first quarter of 2011.
In a statement, the company explains: "The weak sales development in the past quarter was mainly due to weak market demand and the resulting unexpectedly high inventory levels at various levels of trade. As a result of the, at times, very limited availability of solar modules and in particular solar inverters in the past year, wholesalers and installers had built up inventories towards the year-end which were not sufficiently reduced due to the weak demand in the first months of the current year."
Consequently, Michael Wilhelm, chairman of Sunways management board states that the company does not believe it will meet its originally targeted double-digit percentage sales growth this year. He says that it will adhere to its earnings target, however, and still hopes to achieve an EBIT margin in the lower single-digit percentage range.
Wilhelm adds: "In order to reach our earnings target for the current year, we will promptly take all measures on the sales side as well as with regard to costs."